Stocks gained for a sixth straight session, its longest winning streak since October, with TAIEX adding 49.84, or 1 percent, to 5,048.91.
The benchmark has rallied 5.1 percent since June 12. The last time it closed above 5,000 was on Jan. 28, when the index finished at 5,015.16.
Almost 10 stocks gained for every three that fell. About 6 billion shares worth NT$129 billion (US$3.5 billion) changed hands on the Taiwan Stock Exchange Corp, double the daily average in the past three months.
AU Optronics Corp (友達光電), the nation's biggest maker of flat-panel displays used in personal computers, advanced after market researcher DisplaySearch said global shipments are expected to climb to a record in the second quarter.
Nanya Technology Corp (南亞科技), the country's largest maker of computer-memory chips, rose after Micron Technology Inc, the world's No. 2 maker of those chips, said memory-chip prices are improving.
"The markets are focusing on shares of electronics makers now," said Aaron Wu, who manages the equivalent of US$43 million for an equity fund at ABN Amro Asset Management Taiwan Ltd.
"I'm holding on to my shares for fear of missing out on a sustained stock rally amid all the bullish sentiment," Wu said.
AU Optronics rose NT$1.60, or 6.7 percent, to NT$25.40, while Chunghwa Picture Tubes Ltd (
Shipments of notebook-computer-sized flat-panel displays may surge 13 percent in the second quarter from the previous quarter, DisplaySearch said in a statement. Total sales in the current quarter will jump 22 percent from the first quarter because of a narrowing surplus that's boosting average prices by 8 percent.
Nanya Technology rose NT$0.20, or 0.7 percent, to NT$27.30.
Micron Technology said demand from Asia has improved in the past several weeks and chip prices are on ``an upward trend.''
China Development Financial Holding Corp (中華開發金控) dropped NT$0.05, or 0.4 percent, to NT$13.75.
China Steel Corp (
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